Eaton Vance Municipal Bond Fund II

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21219

Investment Company Act File Number

Eaton Vance Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

June 30, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Bond Fund II

June 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 160.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 5.7%

      

Connecticut Health and Educational Facilities Authority, (Fairfield University), 5.00%, 7/1/46

    $ 1,500      $ 1,693,470  

Houston Higher Education Finance Corp., TX, (St. John’s School), 5.25%, 9/1/33

      565        626,862  

Houston Higher Education Finance Corp., TX, (William Marsh Rice University), 5.00%, 5/15/35

      1,745        1,918,243  

Massachusetts Development Finance Agency, (Northeastern University), 5.25%, 3/1/37

      1,650        1,880,307  

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)

      1,500        1,613,400  
     

 

 

  
      $ 7,732,282  
     

 

 

  

Electric Utilities — 4.8%

      

Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/40

    $ 330      $ 376,553  

Pima County Industrial Development Authority, AZ, (Tucson Electric Power Co.), 5.25%, 10/1/40

      1,300        1,395,368  

Public Power Generation Agency, NE, (Whelan Energy Center Unit 2), 5.00%, 1/1/28

      3,000        3,465,780  

Unified Government of Wyandotte County/Kansas City Board of Public Utilities, KS, 5.00%, 9/1/36

      685        762,439  

Utility Debt Securitization Authority, NY, 5.00%, 12/15/35

      500        580,910  
     

 

 

  
      $ 6,581,050  
     

 

 

  

Escrowed/Prerefunded — 15.3%

      

Connecticut Health and Educational Facilities Authority, (Wesleyan University), Prerefunded to 7/1/20, 5.00%, 7/1/39(1)

    $ 2,200      $ 2,449,986  

Hawaii, Prerefunded to 12/1/21, 5.00%, 12/1/29

      1,545        1,792,602  

Hawaii, Prerefunded to 12/1/21, 5.00%, 12/1/29

      955        1,107,600  

Hawaii, Prerefunded to 12/1/21, 5.00%, 12/1/30

      620        719,361  

Hawaii, Prerefunded to 12/1/21, 5.00%, 12/1/30

      380        440,720  

Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), Prerefunded to 1/1/21, 6.125%, 1/1/30

      235        274,320  

Massachusetts Health and Educational Facilities Authority, (Harvard University), Prerefunded to 11/15/18, 5.50%, 11/15/36

      2,045        2,172,444  

Massachusetts Health and Educational Facilities Authority, (Harvard University), Prerefunded to 11/15/18, 5.50%, 11/15/36

      665        706,443  

Mississippi, Prerefunded to 10/1/21, 5.00%, 10/1/36(1)

      1,725        1,992,065  

North Carolina Capital Facilities Finance Agency, (Duke University), Prerefunded to 4/1/19, 5.00%, 10/1/38(1)

      500        534,430  

Oregon, Prerefunded to 8/2/21, 5.00%, 8/1/36

      570        655,910  

Oregon State Department of Administrative Services, Lottery Revenue, Prerefunded to 4/1/21, 5.25%, 4/1/30

      1,120        1,286,835  

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

      110        117,382  

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

      1,310        1,397,914  

Tennessee School Bond Authority, Prerefunded to 5/1/18, 5.50%, 5/1/38

      1,000        1,038,390  

Triborough Bridge and Tunnel Authority, NY, Prerefunded to 5/15/18, 5.00%, 11/15/37

      2,500        2,589,950  

University of Virginia, Prerefunded to 6/1/18, 5.00%, 6/1/40

      1,500        1,556,535  
     

 

 

  
      $ 20,832,887  
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

General Obligations — 16.9%

      

California, 5.00%, 12/1/30

    $ 610      $ 719,422  

California, 5.00%, 10/1/33

      2,150        2,526,250  

Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(1)

      1,680        1,812,401  

Clark County, NV, 5.00%, 7/1/33

      500        569,680  

Delaware Valley Regional Finance Authority, PA, 5.75%, 7/1/32

      2,500        3,162,275  

Kane, Cook and DuPage Counties School District No. 46, IL, 5.00%, 1/1/33

      2,000        2,230,960  

New York, 5.00%, 2/15/34(1)

      2,750        3,100,652  

New York, NY, 5.00%, 8/1/31

      2,000        2,314,260  

Oregon, 5.00%, 8/1/36

      430        487,556  

Washington, 5.00%, 2/1/35(1)

      5,250        6,087,270  
     

 

 

  
      $ 23,010,726  
     

 

 

  

Hospital — 6.2%

      

Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.50%, 7/1/38

    $ 360      $ 411,869  

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.25%, 7/1/35

      615        694,458  

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.00%, 1/1/32

      1,550        1,757,855  

Vermont Educational and Health Buildings Financing Agency, (University of Vermont Medical Center), 5.00%, 12/1/33

      2,500        2,838,400  

Wisconsin Health and Educational Facilities Authority, (Ascension Senior Credit Group), 4.50%, 11/15/39

      2,485        2,724,753  
     

 

 

  
      $ 8,427,335  
     

 

 

  

Industrial Development Revenue — 0.5%

      

Maricopa County Pollution Control Corp., AZ, (El Paso Electric Co.), 4.50%, 8/1/42

    $ 595      $ 616,866  
     

 

 

  
      $ 616,866  
     

 

 

  

Insured-Electric Utilities — 4.7%

      

Chelan County Public Utility District No. 1, WA, (Columbia River), (NPFG), 0.00%, 6/1/23

    $ 6,335      $ 5,556,808  

Louisiana Energy and Power Authority, (AGM), 5.25%, 6/1/38

      735        836,886  
     

 

 

  
      $ 6,393,694  
     

 

 

  

Insured-Escrowed/Prerefunded — 19.1%

      

American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), Prerefunded to 2/15/19, 5.75%, 2/15/39

    $ 1,000      $ 1,076,450  

Arizona Health Facilities Authority, (Banner Health), (BHAC), Prerefunded to 1/1/18, 5.375%, 1/1/32

      1,750        1,789,463  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/26

      670        705,611  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/27

      420        442,323  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.50%, 10/1/38

      660        697,125  

Chicago, IL, Wastewater Transmission Revenue, (BHAC), Prerefunded to 1/1/18, 5.50%, 1/1/38

      1,635        1,672,719  

Colorado Health Facilities Authority, (Catholic Health), (AGM), Prerefunded to 4/29/18, 5.10%, 10/1/41(1)

      2,200        2,276,648  

District of Columbia Water and Sewer Authority, (AGC), Prerefunded to 10/1/18, 5.00%, 10/1/34(1)

      1,250        1,313,275  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

    $ 305      $ 325,197  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

      565        602,414  

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), Prerefunded to 1/1/19, 5.50%, 1/1/29

      255        271,955  

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), Prerefunded to 1/1/19, 5.75%, 1/1/39

      290        310,361  

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/24

      210        228,096  

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/26

      425        461,622  

Palm Springs Unified School District, CA, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

      2,750        2,978,002  

San Diego County Water Authority, CA, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

      3,250        3,362,840  

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

      130        138,724  

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

      1,465        1,563,316  

University of South Alabama, (BHAC), Prerefunded to 8/1/18, 5.00%, 8/1/38

      3,900        4,071,171  

Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), Prerefunded to 8/15/19, 6.00%, 8/15/39

      1,545        1,704,846  
     

 

 

  
      $ 25,992,158  
     

 

 

  

Insured-General Obligations — 0.7%

      

Cincinnati City School District, OH, (AGM), (FGIC), 5.25%, 12/1/30

    $ 750      $ 956,535  
     

 

 

  
      $ 956,535  
     

 

 

  

Insured-Hospital — 6.6%

      

California Statewide Communities Development Authority, (Sutter Health), (AGM), Prerefunded to 8/15/18, 5.05%, 8/15/38(1)

    $ 1,500      $ 1,552,485  

Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)

      2,500        2,600,650  

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

      2,245        2,425,229  

Washington Health Care Facilities Authority, (Providence Health Care), (AGM), 5.25%, 10/1/33

      2,300        2,412,286  
     

 

 

  
      $ 8,990,650  
     

 

 

  

Insured-Industrial Development Revenue — 1.1%

      

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39

    $ 1,340      $ 1,439,924  
     

 

 

  
      $ 1,439,924  
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 1.0%

      

Essex County Improvement Authority, NJ, (NPFG), 5.50%, 10/1/30

    $ 1,000      $ 1,311,140  
     

 

 

  
      $ 1,311,140  
     

 

 

  

Insured-Other Revenue — 1.7%

      

Harris County-Houston Sports Authority, TX, (AGM), (NPFG), 0.00%, 11/15/34

    $ 2,540      $ 1,210,310  

New York City Industrial Development Agency, NY, (Yankee Stadium), (AGC), 7.00%, 3/1/49

      1,000        1,095,860  
     

 

 

  
      $ 2,306,170  
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Solid Waste — 0.4%

      

Palm Beach County Solid Waste Authority, FL, (BHAC), 5.00%, 10/1/24

    $ 530      $ 574,992  
     

 

 

  
      $ 574,992  
     

 

 

  

Insured-Special Tax Revenue — 5.6%

      

Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39

    $ 3,000      $ 3,569,970  

Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30

      2,540        3,135,655  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

      4,440        882,006  
     

 

 

  
      $ 7,587,631  
     

 

 

  

Insured-Student Loan — 0.8%

      

Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27

    $ 960      $ 1,021,229  
     

 

 

  
      $ 1,021,229  
     

 

 

  

Insured-Transportation — 19.2%

      

Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/29

    $ 260      $ 298,553  

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/30

      400        453,780  

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/31

      180        203,656  

Chicago, IL, (O’Hare International Airport), (AGM), 5.25%, 1/1/32

      100        113,561  

Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39

      1,585        1,714,177  

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22

      7,800        6,986,616  

Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30

      1,305        1,349,840  

Maryland Transportation Authority, (AGM), 5.00%, 7/1/41(1)

      10,000        10,393,500  

Metropolitan Washington Airports Authority, D.C., (BHAC), 5.00%, 10/1/24

      1,000        1,084,250  

Metropolitan Washington Airports Authority, D.C., (BHAC), 5.00%, 10/1/29

      535        577,709  

New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38

      1,040        1,090,575  

North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48

      210        214,883  

North Texas Tollway Authority, (BHAC), Prerefunded to 1/1/18, 5.75%, 1/1/48

      1,540        1,577,545  
     

 

 

  
      $ 26,058,645  
     

 

 

  

Insured-Water and Sewer — 4.6%

      

Houston, TX, Combined Utility System Revenue, (AGM), (BHAC), 5.00%, 11/15/33

    $ 105      $ 106,527  

Houston, TX, Combined Utility System Revenue, (AGM), (BHAC), Prerefunded to 11/15/17, 5.00%, 11/15/33

      330        335,161  

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35

      1,000        1,292,680  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/32

      230        261,503  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/33

      195        220,916  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/35

      240        270,600  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/37

      195        219,205  

New York City Municipal Water Finance Authority, NY, (BHAC), 5.75%, 6/15/40

      2,205        2,304,401  

Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31

      1,220        1,220,769  
     

 

 

  
      $ 6,231,762  
     

 

 

  

 

4

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Lease Revenue/Certificates of Participation — 10.5%

      

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31

    $ 2,235      $ 2,382,912  

North Carolina, Capital Improvement Limited Obligation Bonds, 5.00%, 5/1/30

      5,000        5,623,400  

North Carolina, Limited Obligation Bonds, 5.00%, 5/1/26(1)

      5,250        6,317,325  
     

 

 

  
      $ 14,323,637  
     

 

 

  

Other Revenue — 0.4%

      

Oregon State Department of Administrative Services, Lottery Revenue, 5.25%, 4/1/30

    $ 180      $ 204,804  

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/30

      260        287,932  
     

 

 

  
      $ 492,736  
     

 

 

  

Special Tax Revenue — 11.2%

      

Central Puget Sound Regional Transit Authority, WA, Sales and Use Tax Revenue, 5.00%, 11/1/30(1)

    $ 1,850      $ 2,216,781  

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/35

      405        471,384  

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/36

      215        249,925  

Homewood City Board of Education, AL, 5.00%, 4/1/32

      1,880        2,120,452  

Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.25%, 7/1/33

      750        967,665  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 3.00%, 2/1/39

      190        184,313  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 5.50%, 11/1/35(1)

      2,145        2,434,232  

New York City Transitional Finance Authority, NY, Future Tax Revenue, Prerefunded to 11/1/20, 5.50%, 11/1/35(1)

      1,655        1,891,108  

New York Dormitory Authority, Personal Income Tax Revenue, 4.00%, 2/15/35(2)

      2,000        2,139,700  

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/34

      465        529,919  

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/35

      1,710        1,947,758  
     

 

 

  
      $ 15,153,237  
     

 

 

  

Transportation — 17.8%

      

Austin, TX, Airport System Revenue, 5.00%, 11/15/41

    $ 2,110      $ 2,443,232  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/33

      1,750        2,016,630  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/34

      1,000        1,142,130  

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/30

      640        750,086  

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/31

      990        1,157,429  

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

      1,715        1,857,928  

Los Angeles Department of Airports, CA, (Los Angeles International Airport), 5.25%, 5/15/28

      465        519,094  

Metropolitan Transportation Authority, NY, 5.25%, 11/15/32

      620        736,107  

Metropolitan Transportation Authority, NY, 5.25%, 11/15/38

      865        988,868  

Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41

      2,095        2,270,875  

Miami-Dade County, FL, Aviation Revenue, 5.00%, 10/1/37

      1,385        1,569,108  

New Jersey Transportation Trust Fund Authority, (Transportation Program), 5.00%, 6/15/38

      130        133,297  

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.25%, 12/15/23

      1,000        1,095,860  

New York Liberty Development Corp., (4 World Trade Center), 5.00%, 11/15/31

      1,070        1,206,682  

Orlando-Orange County Expressway Authority, FL, 5.00%, 7/1/35

      90        98,868  

Orlando-Orange County Expressway Authority, FL, 5.00%, 7/1/40

      230        251,668  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/35

      330        367,082  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/40

      145        161,294  

Port Authority of New York and New Jersey, 5.00%, 12/1/34(1)

      2,040        2,355,098  

South Carolina Transportation Infrastructure Bank, 5.25%, 10/1/40

      1,000        1,074,590  

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/37

      1,500        1,663,695  

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/42

      265        292,502  
     

 

 

  
      $ 24,152,123  
     

 

 

  

 

5

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 5.2%

      

Detroit, MI, Sewage Disposal System, 5.00%, 7/1/32

    $ 1,555      $ 1,713,672  

Detroit, MI, Sewage Disposal System, 5.25%, 7/1/39

      380        422,241  

Detroit, MI, Water Supply System, 5.25%, 7/1/41

      300        326,463  

New York City Municipal Water Finance Authority, NY, (Water and Sewer System), 5.00%, 6/15/36

      4,000        4,621,200  
     

 

 

  
      $ 7,083,576  
     

 

 

  

Total Tax-Exempt Investments — 160.0%
(identified cost $200,622,497)

       $ 217,270,985  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (3.5)%

       $ (4,750,735 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (29.3)%

       $ (39,776,049 ) 
     

 

 

  

Other Assets, Less Liabilities — (27.2)%

       $ (36,972,252 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 135,771,949  
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

At June 30, 2017, the concentration of the Fund’s investments in the various states and territories, determined as a percentage of total investments, is as follows:

 

                        

New York

      15.0 % 

Others, representing less than 10% individually

      85.0 % 

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at June 30, 2017, 40.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.4% to 15.2% of total investments.

 

(1) Security represents the municipal bond held by a trust that issues residual interest bonds.

 

(2) When-issued security.

Futures Contracts

 

Description

    Contracts      Position      Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Depreciation		  

Interest Rate Futures

                

U.S. Long Treasury Bond

      29        Short        Sep-17      $     (4,409,780 )    $     (4,456,938 )    $ (47,158 ) 
               

 

 

  
                $     (47,158 ) 
               

 

 

  

 

6

 

 

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

At June 30, 2017, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

The Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Fund holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Fund enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At June 30, 2017, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is interest rate risk was $47,158.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     158,982,448  
  

 

 

  

Gross unrealized appreciation

    $ 17,350,401  

Gross unrealized depreciation

      (256,864 ) 
  

 

 

  

Net unrealized appreciation

    $ 17,093,537  
  

 

 

  

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

•   Level 1 – quoted prices in active markets for identical investments

 

•   Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

•   Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At June 30, 2017, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

    $ —      $ 217,270,985      $ —      $ 217,270,985  

Total Investments

    $ —      $     217,270,985      $     —      $     217,270,985  
Liability Description                                

Futures Contracts

    $     (47,158 )     $ —      $ —      $ (47,158 ) 

Total

    $ (47,158 )     $ —      $ —      $ (47,158 ) 

 

7

 

 

The Fund held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At June 30, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

 

8

 

 

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Municipal Bond Fund II

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 24, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   August 24, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 24, 2017